On 7 December 2017 the Parliament of Ukraine voted to introduce a number of amendments to the Tax Code of Ukraine* (the “Amendments”) aimed at ensuring the balance of the budget revenues in 2018.
The Amendments introduce a VAT exemption for exports of soy, sunflower seeds and rape grain cultures. The VAT exemption replaces the currently applicable 0% export VAT rate, and effectively means that exporters of these cultures will lose their rights to recover input VAT accumulated from the purchase of exported goods. These provisions have been introduced to promote in-country processing of oilseed cultures into products with higher added value, instead of exporting raw grain.
The Amendments are yet to be signed into law by the President of Ukraine. When signed and published, the VAT exemption on exports of oilseed cultures will become effective on 1 March 2018.